Coingecko Research: Over 20% of Top Cryptos Are Low Float

A shocking research analysis has been released by Coingecko indicating the little-known side of cryptocurrencies. The research findings identify a unique trend amongst newer cryptocurrencies, raising some eyebrows. The research reveals that nearly a quarter of the Top 300 cryptocurrencies in the market today are low float. 

Low Float Cryptos- Coingecko Research

The Coingecko research defines Low-float as a cryptocurrency with a market cap to full diluted valuation ratio below 0.5. High-float cryptocurrencies would then have a market cap to FDV ratio between 0.5 and 0.99, while a perfect market cap to FDV ratio of 1 represents fully diluted cryptocurrencies. 

Among the top 300 cryptos in the market, only 24.67% are fully diluted, while a huge chunk is high-float, accounting for 54%. 

The numbers start to get more interesting as you dive deeper into the analytics. The research reveals that out of the 64 low-float cryptos, 54 of them were launched within the last four years. 

High-float and Fully Diluted Market Cap Cryptocurrencies

Coingecko’s research analytics disclosed that only 74 cryptocurrencies in the top 300 have a perfect market cap to FDV ratio, translating to 24.7%. The fully diluted tokens essentially have no further tokens lined up for release.

Of the 74 fully diluted cryptocurrencies, 14 were Memecoins, showing the strong presence of Memecoins in the current crypto market.

The high-float tokens account for the largest portion of the top 300 cryptocurrencies, with 54% of the market.  More than half of their total supply is already in circulation. It appears there’s a strong correlation between the age of the cryptocurrency and the market cap to FDV ratio. Mostly, older cryptocurrencies seem to have higher ratios. 

The research reveals the average market cap to FDV ratio of the top 300 cryptocurrencies to be 0.73, which looks like a healthy figure for the industry. 

CoinGecko’s Research Methodology

Coingecko’s research team excluded stablecoins and wrapped tokens in the study, and ranked cryptocurrencies by market cap. The final list was taken on May 8th. 

The study assumed tokens with no maximum supply had the same FDV as their market capitalization. 

The analytics reveal an interesting perspective on the current state of cryptocurrencies, exposing current trends and potential future trends within the crypto industry.